Zara Reflection

In class last Wednesday we reviewed the Zara: IT for Fast Fashion case. The main issue in this case is whether or not Zara needs to update the operating system they use to operate their point of sale (POS) terminal systems. Currently, they were running on DOS systems which, at best, can be classified as outdated. The DOS system is no longer supported by Microsoft, however their supplier verbally confirmed they are not planning on discontinuing the product anytime soon.

Theoretically, Zara can buy a supply of the DOS POS terminals to have a stock of them to support new store openings and keep operating on the outdated system. This system has run smoothly for decades and has never cause any issues. When new stores need to open all they have to do is insert a disc and they are up and running. In terms of current business process there is no need for an update. They can stick with the old saying "If it isn't broke, don't fix it."

However, if they continue to operate on the DOS systems they are truly is a race against the clock on how long their supplier will actually keep supplying this system. Currently Zara is the suppliers largest client with these systems and as time passes they have less and less clients on this system. It will only be a matter of time until Zara will be forced to update to a more current operating system.

To avoid being forced to choose they should take advantage of having time on their side and create a plan of action. They should look at all the options and pick which system best suits them. It will take a large investment upfront and increased expenses overtime (i.e. maintaining a larger IT department), but it would be beneficially. They would be able to take advantage of added benefits like online shopping.

I think the biggest decision they would need to make in the process is whether or not to covert all at once or in a roll out fashion. The benefit to rolling it out all at once is Zara wouldn't have to maintain two systems the DOS and the new system. However, the benefit to the roll out process is they would start small dealing with small hiccups and as they implement the new systems in more and more stores they would perfect the process so that it would become seamless overtime.

The question here isn't if they should upgrade, it's how should they go through the upgrade process. Eventually they will need to move away from the DOS systems they just need to figure out the best way to roll out whichever system they decide to go with.